Friday, July 08, 2011

Thursday saw some half decent buying volume, although it was well off a typical accumulation day. Better were the breakout gaps with the Nasdaq and Nasdaq 100. The latter index finished just shy of a new closing high for 2011.

The S&P cleared 1,343 which was the marker level for a bearish head-and-shoulder reversal. Shorts who were looking to benefit were caught with their pants down. Next challenge is to negate the May bull trap.

The sister Nasdaq 100 enjoyed the best of Tech action and has almost made a new closing high for 2011. When it does it will have negated the May bull trap and will have sent a very positive signal to other lead indices.

Finally, the Russell 2000 posted the largest gain on the day, taking it up to what may yet (ironically) be potential head-and-shoulder reversal. But technicals are healthy and momentum is definitely with bulls. It would take an unlikely loss to go back to - and below - 773.

Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Zignals Trading Strategy Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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Just for Fun..

This clock reached its time on October 19th 2017. This was a forecast for a "Major Market Top". Unfortunately, I can't find the link for the source material (but years ending in "7" was one of the red flags) but I thought it interesting enough to start this countdown clock 2 years ago.